# In the matter of Tarkett Industries Limited CP (IB) No. 623-MB-2022

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-01601. The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-01601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tarkett-industries-limited-cp-ib-no-623-mb-2022-11164b42

## Summary

### Background

The case pertains to a Company Petition filed under Section 59(7) of the Insolvency and Bankruptcy Code, 2016 by Tarkett Industries Limited through its Liquidator, Ms. Maya Gupta, for voluntary liquidation. The Corporate Person was incorporated on February 10, 2006, under the Companies Act, 1956, to engage in manufacturing, export-import, and related activities. Due to unsatisfactory business growth, the Corporate Person ceased operations and generated no revenue since April 1, 2019, leading to the decision to pursue voluntary liquidation.

## Facts

Tarkett Industries Limited, incorporated on February 10, 2006, under the Companies Act, 1956, decided to undergo voluntary liquidation due to unsatisfactory business growth and cessation of operations. The company had not generated any revenue since April 1, 2019, and had no expansion plans. An Extra-Ordinary General Meeting was held on October 20, 2020, where the Board of Directors approved a Special Resolution to voluntarily liquidate the company. Ms. Maya Gupta was appointed as the Liquidator. The Directors furnished a Declaration of Solvency on October 12, 2020. The company had no fixed assets except for cash, cash equivalents, and Security Deposits amounting to Rs. 32,121/- as of July 31, 2020. The Liquidator submitted a Preliminary Report on December 4, 2020, and

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## Issues and analysis

### Issue 1: Whether the Corporate Person, Tarkett Industries Limited, deserves to be dissolved under Section …

**Ratio:** Section 59(7) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The NCLT examined the submissions made by the counsel for the Corporate Person and the

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**Interpretation:** Section 59(7) provides the legal basis for the dissolution of a corporate

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**Application:** In this case, the NCLT applied the provisions of Section 59(7) after verifying

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Respondents:** Tarkett Industries…

## Timeline

- **2006-02-10 — Incorporation of…**: Tarkett Industries Limited was…
- **2019-04-01 — Cessation of Revenue…**: The Corporate Person had not…

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